The latest data from HM Revenue & Customs shows that more than 13 million adults in the UK subscribed to ISA accounts in 2019/2020 – an increase of 1.8 million people on the previous financial year.
Of the new subscribers, 1.2 million had opened Cash ISA accounts, while around 300,000 had chosen to invest via Stocks and Shares ISAs.
The amount deposited into adult ISA accounts also rose in this period to £75 billion, up by £7.1 billion compared to 2018/2019.
The bulk of this amount was driven by the rise in Cash ISA subscriptions, which increased in value by £4.8 billion, while Stocks and Shares ISAs increased by £1.6 billion.
The latest figures show that the median ISA holder had an annual income of between £10,000 and £19,999, with average ISA savings of around £25,320.
Unsurprisingly, higher earners had much more invested into ISAs, with those with incomes of £150,000 or more having an average ISA holding of £88,970.
Age also has a big role to play in those subscribed and the amount saved. The least common group to hold an ISA were under 25s.
It should come as no surprise then that the proportion of ISA holders with ISAs valued at between £1 and £2,499 is highest among those aged 25 to 34.
In comparison, the most common group was savers in the 65 and over group, who had the highest average savings of around £52,590.
Although the data only covers a short period of early lockdown, there is growing evidence to suggest that many people saved more during lockdown because much of normal life was put on hold.
Those with significant savings, whether in ISAs or other products, should seek independent financial advice to ensure they are making the most of their money.